Mumbai: Tata Capital has received a tax demand of ₹413.18 crore from the Income Tax Department. The demand is related to the financial year 2017–18 and was issued through a reassessment order on March 20, 2026.
The notice was sent by the Deputy Commissioner of Income Tax, Mumbai.
Linked to Merged Entity
The order is connected to Tata Capital Financial Services Ltd (TCFSL), which has now been merged with Tata Capital from April 1, 2023.
This means the current demand is being handled by Tata Capital, even though it relates to the earlier entity.
Break-Up of the Demand
The total demand of ₹413.18 crore includes ₹209.52 crore as tax and ₹202.72 crore as interest.
According to the company, the demand mainly arises due to alleged short credit of taxes paid and certain disallowances made by the tax authorities.
Company Flags Calculation Errors
Tata Capital has said the demand is based on calculation mistakes. It explained that the tax officer wrongly gave credit to Tata Capital instead of TCFSL.
This led to a mismatch in tax credit and resulted in a higher interest calculation. The company believes the entire demand is not valid.
Company to Challenge the Order
The company has said it will file a rectification application and may also appeal against the order. It is confident of getting relief, citing strong legal grounds.
Tata Capital has also mentioned that it is already challenging other disallowances worth ₹26.31 crore and expects a favourable decision in those cases as well.
No Major Impact Expected
Despite the large demand amount, Tata Capital has assured that this issue will not have any significant impact on its business operations or financial position.
The company remains confident that the matter will be resolved positively.
